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AOT presents statewide transportation funding study; recommends EV-targeted mileage fee pilot and multiple revenue options
Summary
Agency of Transportation presented a statutorily required funding study that projects long-term revenue shortfalls driven by fuel-efficiency trends and electrification, and analyzed revenue options including gas/diesel indexing, mileage-based user fees, retail delivery fees, TNC fees and MPG-based registration.
Patrick Murphy, state policy director at the Agency of Transportation, told the Senate Transportation Committee that the agency’s transportation funding study — directed by last year’s transportation bill — quantifies expected gaps over a 10-year horizon and evaluates alternative revenue mechanisms.
"This is not sort of a budgetary exercise," Murphy said, explaining that the study models need estimates for core maintenance and capital obligations rather than agency budget requests.
Why it matters: the study projects growing gaps between projected revenues and projected program needs driven by rising fuel efficiency and increasing electric vehicle (EV) adoption. Murphy said prior AOT studies (2013, 2016) similarly projected out-year shortfalls, and the current study updates those estimates with contemporary inflation and electrification assumptions.
What the study covers: Murphy said the report reviews current funding levels and the sustainability of each major revenue stream (fuel taxes, purchase-and-use taxes, DMV fees, federal funds), evaluates future trends (electrification, vehicle-miles traveled, inflation), and tests a…
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